Decision on $35 billion Future Frigate warship fleet expected this week

A DECISION on the $35 billion Future Frigates program is expected within days – sources say as soon as Thursday.

• Work underway on shipyard where frigates will be built

A DECISION on the $35 billion Future Frigates program is expected within days.

Industry sources believe the decision will be made today, with an announcement of the winning tender tomorrow in Adelaide.

The nine-strong warship fleet will be built in Adelaide.

However, the Federal Government will not confirm the timeline or comment on the rumour that Prime Minister Malcolm Turnbull will be in town for the announcement.

Three companies are in the running – Britain’s BAE, Italy’s Fincantieri and Spain’s Navantia. All now operate Australian businesses. BAE is seen as the frontrunner, but there are remaining concerns about the riskiness of such a new ship. Fincantieri is also believed to be in the mix. Few believe Navantia will win.

BAE's Type 26 Global Combat Ship for the Future Frigate program. BAE is considered the frontrunner but a decision is expected this week.

Premier Steven Marshall, who holds the state defence portfolio, said the decision was “imminent”.

“It can only be weeks, or maybe even days, away before the Federal Government makes its decision,” he said.

“The various proposals were put in to the Federal Government some time ago and considered by Navy.

“It’s great news for all people and businesses in SA. The Future Frigates program is ­absolutely massive, and we’re really looking forward to the rollout (of) nine frigates to be built here in Osborne.”

Opposition Leader Peter Malinauskas said: “The Liberals must outline how the future frigates project will maximise local jobs in South Australia”.

Expectations have been raised before – there was a chance of an announcement in May but the committee needed more information.

The Federal Government had said it would happen by the end of June, but Defence Industry Minister Christopher Pyne floated the possibility they might wait until July.

The Advertiser has been told by various people that Australian shipbuilders ASC and Austal will be involved.

Ahead of the frigate decision, Centre Alliance Senator Rex Patrick yesterday raised new questions about the $50 billion estimated cost of Australia’s new submarines.

Senator Patrick said a 2016 letter revealed German company TKMS had been willing to design and build the new submarines in Adelaide for $20 billion. Later in 2016, Naval Group of France was chosen to design and build the submarines.

Defence Minister Marise Payne said the $50 billion submarine budget included more than just than the design and construction costs. It will also be used to fund the design of weapons systems, a new shipyard and other expenses.

– with Peter Jean